SanDisk Signs Licensing Agreement to Support DivX Format Video

Business Wire, June 13, 2007

Relationship will Allow Consumers to Enjoy High-Quality DivX Video in the Home or on the Go

SAN DIEGO & MILPITAS, Calif. -- DivX, Inc. (NASDAQ:DIVX) and SanDisk([R]) Corporation (NASDAQ:SNDK) today announced a licensing agreement allowing SanDisk to include DivX([R]) technology in SanDisk's Sansa([R]) line of video-enabled products.

As a result of the partnership, future SanDisk video products can now include interoperability with the DivX Stage6 video website. This partnership is designed to provide SanDisk consumers with seamless access to the growing library of professional and user-generated video content available today in the popular DivX format.

"This partnership aims to allow our customers to take full advantage of innovative video features and content found only through DivX," said Daniel Schreiber, Senior Vice-President and General Manager for SanDisk's Audio Video Business Unit.

"Our agreement with SanDisk brings together pioneering consumer electronics with DivX's expertise for digital video," said Kevin Hell, President of DivX, Inc. "Adding DivX to the Sansa product line's arsenal of features will provide cutting-edge media capabilities to consumers, and strengthen the common media language we're building through the open DivX ecosystem."

Products that bear the DivX Certified logo have undergone a rigorous testing program to ensure a high-quality DivX media experience, including reliable video playback, interoperability with other DivX Certified devices and the visual quality users expect from DivX.

SanDisk expects to announce plans later this year for DivX support in its product lines.

About SanDisk

SanDisk is the original inventor of flash storage cards and is the world's largest supplier of flash data storage card products using its patented, high-density flash memory and controller technology. SanDisk is headquartered in Milpitas, CA and has operations worldwide, with more than half its sales outside the U.S.

About DivX, Inc.

DivX creates products and services designed to improve the experience of media. Our first product offering was a video compression-decompression software library, or codec, which has been actively sought out and downloaded over 220 million times since January 2003, including over 70 million times during the last twelve months. We have since built on the success of our codec with other consumer software, including the DivX Player application, which is distributed from our website, www.divx.com. We also license our technologies to consumer hardware device manufacturers and certify their products to ensure the interoperable support of DivX-encoded content. In addition to technology licensing to consumer hardware device manufacturers, we currently generate revenue from software licensing, advertising and content distribution.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding expectations for new product introductions, applications, markets, and customers that are based on each company's current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. These factors include, but are not limited to, market demand for products may grow more slowly than expectations or there may be a slower adoption rate for these products in new markets that are being targeted, product introductions may be delayed, the products may not perform as expected, and the other risks detailed from time-to-time in each company's Securities and Exchange Commission filings and reports, including, but not limited to, each company's Form 10-K and quarterly reports on Form 10-Q, such as DivX's quarterly report on Form 10-Q filed with the SEC on May 15, 2007. All forward-looking statements are qualified in their entirety by this cautionary statement. Each company is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

SanDisk and Sansa are trademarks of SanDisk Corporation, registered in the U.S. and other countries.